That's what Fox News called it this morning. They were covering a decoration ceremony for some WWII Army Air Corps survivors. On missions over Germany their B17's got shot up and had to crash land in Switzerland. The Swiss "interned" them in conditions as harsh as a German POW camp. But since it was Switzerland, not Germany, the airmen were denied prisoner of war medals when WWII was over. Relatives worked long and hard to reverse this, and this morning the few airmen still alive were presented with their medals.
Aside from the Fox voiceover calling the B17 a fighter, all went well. How anyone could mistake the most famous American warplane, hero of movies such as Twelve o'Clock High, The War Lover, and Memphis Belle, as a fighter plane, reveals much about the shallowness of TV newsies. And this was on Fox, the best of 'em. Saints preserve us from what the bottom feeders like MSNBC are polluting the airwaves with.
Wednesday, April 30, 2014
Tuesday, April 29, 2014
Get the Feds out of the Mortgage Business
The housing industry, realtors, builders, mortgage lenders, appliance makers, and others, back in Great Depression 1.0 persuaded Congress to give them a handout. They claimed a shortage of mortgage money was crimping the industry's wings, and housing was needed to provide jobs and "home ownership". And so our tax money was channeled into mortgages thru Fannie Mae. Actually, Fannie Mae made good money for many years. It borrowed at the low Federal T-bill rate because everyone believed that the US government would back up Fannie's bonds, and it loaned at the commercial mortgage rate, leaving a comfy profit margin. Fannie Mae even sold stock to private investors, with dividends paid out of the juicy profits. Fannie Mae (and its younger brother Freddie Mac) offered cushy jobs for retired politicians, and nice profits to investors.
In the 1980's Fannie got into, or started up, the "secondary mortgage market". In this deal, they would buy existing mortgages from the "primary" lenders, mostly banks. For a while this made money, but the side effects gave us Great Depression 2.0. The primary lenders found that they could make money on anything, do the mortgage, sock the buyer with hefty paperwork fees to do the deal, then sell the mortgage to Fannie. If the mortgage went bad, borrower skipped town, property wasn't worth the money in the mortgage, the primary lender didn't care. He made his money the minute Fannie bought the mortgage off him. And so the quality of the mortgages went down hill. Suddenly investors stopped loaning money to Fannie, and shortly after Great Depression 2.0 stalked the land, Fannie got taken over by the US treasury. $188 billion of your tax money was poured into Fannie to meet it's obligations.
With this sorry history, we ought to get the Federal government out of the mortgage business. There is plenty of private money to finance home buying. Remember, a mortgage is a VERY desirable deal for the lender. His loan is secured by real property, something tangible and salable. If the borrower defaults the bank gets the house. And, the borrower is highly motivated to make his payments. No spouse wants to explain to his partner why they and their children are getting pitched out into the street.
If private investors will buy US T-bills that only pay 3%, they will be happy to make an equally safe mortgage loan at 4.5%. They will be plenty of mortgage money if we give the mortgage business back to private banks. And we ought to forbid the selling of mortgages. When you make a mortgage you will own it til it's paid off. This will discourage doing mortgages that are bound to fail.
In the 1980's Fannie got into, or started up, the "secondary mortgage market". In this deal, they would buy existing mortgages from the "primary" lenders, mostly banks. For a while this made money, but the side effects gave us Great Depression 2.0. The primary lenders found that they could make money on anything, do the mortgage, sock the buyer with hefty paperwork fees to do the deal, then sell the mortgage to Fannie. If the mortgage went bad, borrower skipped town, property wasn't worth the money in the mortgage, the primary lender didn't care. He made his money the minute Fannie bought the mortgage off him. And so the quality of the mortgages went down hill. Suddenly investors stopped loaning money to Fannie, and shortly after Great Depression 2.0 stalked the land, Fannie got taken over by the US treasury. $188 billion of your tax money was poured into Fannie to meet it's obligations.
With this sorry history, we ought to get the Federal government out of the mortgage business. There is plenty of private money to finance home buying. Remember, a mortgage is a VERY desirable deal for the lender. His loan is secured by real property, something tangible and salable. If the borrower defaults the bank gets the house. And, the borrower is highly motivated to make his payments. No spouse wants to explain to his partner why they and their children are getting pitched out into the street.
If private investors will buy US T-bills that only pay 3%, they will be happy to make an equally safe mortgage loan at 4.5%. They will be plenty of mortgage money if we give the mortgage business back to private banks. And we ought to forbid the selling of mortgages. When you make a mortgage you will own it til it's paid off. This will discourage doing mortgages that are bound to fail.
Monday, April 28, 2014
Just one more thing for Republicans
Stop the NSA snooping of cell phones, all phones for that matter.
"The right of the people to be secure in their persons, houses, papers and effects against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probably cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." Article IV. The "oath or affirmation" was language acceptable to the Quakers, who refused to take oaths as a matter of religious principle. Quakers would "affirm" their testimony, but would not testify under oath.
NSA is violating every clause of Article IV. They have no Warrant. They have no probably cause. Snooping every cell phone in the country is not "particularly describing the place to be searched".
It's creepy to know that government can check every person I ever telephoned, and probably where I was when I placed the call. Your (or my) political enemies could troll thru this record looking for dirt. Just accepting a phone call from some scum bag could do your rep, and your chances of winning an election, a lot of harm. How often have you picked up your phone and found some slimey robocaller on the line?
"The right of the people to be secure in their persons, houses, papers and effects against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probably cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." Article IV. The "oath or affirmation" was language acceptable to the Quakers, who refused to take oaths as a matter of religious principle. Quakers would "affirm" their testimony, but would not testify under oath.
NSA is violating every clause of Article IV. They have no Warrant. They have no probably cause. Snooping every cell phone in the country is not "particularly describing the place to be searched".
It's creepy to know that government can check every person I ever telephoned, and probably where I was when I placed the call. Your (or my) political enemies could troll thru this record looking for dirt. Just accepting a phone call from some scum bag could do your rep, and your chances of winning an election, a lot of harm. How often have you picked up your phone and found some slimey robocaller on the line?
But they won't vote Republican
The Washington Examiner has a story about the Laborers International union, which naturally favors Keystone XL. The Examiner cites union outrage over the Obama administrations latest stall on the pipeline. But, despite outrage, the 557,000 member union never says to its membership "Vote a straight Republican ticket, that will get us Keystone XL and keep us off unemployment." Here is a clear cut case where Republicans can help the union but the union people cannot drop their lifelong loyalty to the democrats. These are clearly instinct voters, not thinking voters.
The Examiner goes on to explain the role of hedge fund billionaire Tom Steyer, who gave $50 million to Obama, and promised to raise another $50 million. Obama clearly values the $100 million more than he values 557,000 live and voting union members. I guess he figures they are all dumb enough to vote democratic no matter what.
The Examiner goes on to explain the role of hedge fund billionaire Tom Steyer, who gave $50 million to Obama, and promised to raise another $50 million. Obama clearly values the $100 million more than he values 557,000 live and voting union members. I guess he figures they are all dumb enough to vote democratic no matter what.
Sunday, April 27, 2014
The Big Enchilada, jobs, jobs, and more jobs.
And everyone likes this one. Turn the economy around, get hiring people, have jobs for everyone, enough jobs that workers can quit companies they don't like and be able to find another job. That will bring wages up.
But to win the election, the GOP has to spell out HOW it is going to achieve this nirvana. Voters want specifics. Such as:
1. Start the Keystone XL pipeline. It will get crude oil shipments off the rails and into a pipe. It brings oil in from one of our closest allies. It will lower the price of gasoline and furnace oil. It will allow US export of fuels to our friends around the world.
2. Repeal Sarbanes Oxley. This 1000 page law is welfare for lawyers, an intolerable burden on companies, and has driven merger and acquisition business out of New York. Getting rid of Sarbanes Oxley will make it easier to run a business, and business is what employs people.
3. Repeal Dodd Frank. Another 1000 page law, welfare for lawyers. Dodd Frank sets up ways for taxpayers to bail out firms "too big to fail". Replace Dodd Frank with some anti trust action, any company too big to fail is clearly a trust, and needs to be busted. Dodd Frank tells Wall St speculators that they can take any sort of risk, when things go bad Uncle will bail you out.
4. Reform corporate income tax. For instance, money earned overseas should not be subject to US income tax. Companies that make money overseas should be free to bring the money back to the US and spend it. Right now Uncle takes 35% of every dollar brought home from overseas. At this rate, it makes sense to leave the money in overseas banks earning a couple a percent rather than investing it back here at home. And, that 35% corporate tax rate is the highest in the industrial world. No wonder companies are sending jobs overseas, the taxes are lower.
5. Reform the US patent system. Right now no one can bring any new product to market without some patent troll suing for patent infringement as soon as the product makes a little money. Look are the $600 million award against Blackberry some years ago. Blackberry is filing for bankruptcy today. Patents are granted for ridiculous things, like whether it takes one click or two clicks to place something in an internet shopping basket. This constant threat of mickey mouse lawsuits makes getting a start up company off the ground harder. It's the start ups that employ people.
6. Remind every one that a $10 minimum wage doesn't put more money in worker's pockets, instead it throws them out of work.
7. Repeal the "Corporate Average Fuel Economy" (CAFE) requirements. Four dollar a gallon gasoline is all the incentive anyone needs to build fuel efficient vehicles. The current CAFE requirement of nearly 50 mpg makes new cars ridiculously expensive, leading to lower car sales and people refurbishing old cars to keep them running longer.
But to win the election, the GOP has to spell out HOW it is going to achieve this nirvana. Voters want specifics. Such as:
1. Start the Keystone XL pipeline. It will get crude oil shipments off the rails and into a pipe. It brings oil in from one of our closest allies. It will lower the price of gasoline and furnace oil. It will allow US export of fuels to our friends around the world.
2. Repeal Sarbanes Oxley. This 1000 page law is welfare for lawyers, an intolerable burden on companies, and has driven merger and acquisition business out of New York. Getting rid of Sarbanes Oxley will make it easier to run a business, and business is what employs people.
3. Repeal Dodd Frank. Another 1000 page law, welfare for lawyers. Dodd Frank sets up ways for taxpayers to bail out firms "too big to fail". Replace Dodd Frank with some anti trust action, any company too big to fail is clearly a trust, and needs to be busted. Dodd Frank tells Wall St speculators that they can take any sort of risk, when things go bad Uncle will bail you out.
4. Reform corporate income tax. For instance, money earned overseas should not be subject to US income tax. Companies that make money overseas should be free to bring the money back to the US and spend it. Right now Uncle takes 35% of every dollar brought home from overseas. At this rate, it makes sense to leave the money in overseas banks earning a couple a percent rather than investing it back here at home. And, that 35% corporate tax rate is the highest in the industrial world. No wonder companies are sending jobs overseas, the taxes are lower.
5. Reform the US patent system. Right now no one can bring any new product to market without some patent troll suing for patent infringement as soon as the product makes a little money. Look are the $600 million award against Blackberry some years ago. Blackberry is filing for bankruptcy today. Patents are granted for ridiculous things, like whether it takes one click or two clicks to place something in an internet shopping basket. This constant threat of mickey mouse lawsuits makes getting a start up company off the ground harder. It's the start ups that employ people.
6. Remind every one that a $10 minimum wage doesn't put more money in worker's pockets, instead it throws them out of work.
7. Repeal the "Corporate Average Fuel Economy" (CAFE) requirements. Four dollar a gallon gasoline is all the incentive anyone needs to build fuel efficient vehicles. The current CAFE requirement of nearly 50 mpg makes new cars ridiculously expensive, leading to lower car sales and people refurbishing old cars to keep them running longer.
Saturday, April 26, 2014
And, the GOP needs a platform for young people
The young voters are heavy internet users. They all believe that everything should be free. They want to download music, movies, ebooks, you name it, for free. There are some things we could do to make interneting more harmonious.
First, rewrite copy right law. Current copyright runs for the life of the author plus seventy years. We ought to cut that back to fourteen or seventeen years, like it used to be. That would take all the good pop music off copyright and allow downloading legally. My children's ipads are stocked with the great songs I remember fondly from my college years. That was more than seventeen years ago. The kids would love this. The labels hate the idea. Labels don't vote.
Then repeal the Digital Millennium Copyright Act, which permits all sorts of legal bullying by Hollywood and the labels. The kids would love this. Hollywood and the labels hate it. They don't vote.
Then repeal the age 21 drinking law that MADD rod rodded thru Congress twenty years ago. Make drinking age a matter of state law. The kids would love this. And, it would increase safety. Colleges ought to operate on-campus pubs. Students would prefer sipping a few, at a place where their friends might be. After having a few, they can walk back to dorm. Much safer than driving back to campus after a party. Not sure just who is against this idea, but someone is.
Social security and medicare reform. Most young people figure these programs will be gone long before they get eligible for them. They would be fine with some modest trim backs of benefits. They see FICA taking a big whack out of their paychecks, and they don't see any payback for themselves. They see it as a tax on them to support the elderly.
First, rewrite copy right law. Current copyright runs for the life of the author plus seventy years. We ought to cut that back to fourteen or seventeen years, like it used to be. That would take all the good pop music off copyright and allow downloading legally. My children's ipads are stocked with the great songs I remember fondly from my college years. That was more than seventeen years ago. The kids would love this. The labels hate the idea. Labels don't vote.
Then repeal the Digital Millennium Copyright Act, which permits all sorts of legal bullying by Hollywood and the labels. The kids would love this. Hollywood and the labels hate it. They don't vote.
Then repeal the age 21 drinking law that MADD rod rodded thru Congress twenty years ago. Make drinking age a matter of state law. The kids would love this. And, it would increase safety. Colleges ought to operate on-campus pubs. Students would prefer sipping a few, at a place where their friends might be. After having a few, they can walk back to dorm. Much safer than driving back to campus after a party. Not sure just who is against this idea, but someone is.
Social security and medicare reform. Most young people figure these programs will be gone long before they get eligible for them. They would be fine with some modest trim backs of benefits. They see FICA taking a big whack out of their paychecks, and they don't see any payback for themselves. They see it as a tax on them to support the elderly.
Friday, April 25, 2014
Republicans need a platform to win this year
Despite all the pundits claiming this is a Republican year due to misteps by the Obama Adminstration, I am worried. In 2012 Obama carried the women's vote by 10%. That was enough to win the election coast to coast. Women are half the voters. Republicans do poorly with young voters, and that can be fatal. As the seniors die off, the young voters take their places and if they are all democrats, we can kiss the GOP goodby.
Let's talk about women voters first. The Republicans need to get off the pro-life thing. For every pro-life voter we gain, we lose a young woman who fears getting pregnant and not being able to stop it. The party needs to stop backing all those little laws that chip away at abortion. The party doesn't need to switch over to a pro-choice stance, it just needs to stop talking about it. The ardent pro-life people will whine and cry, but in the end they will vote Republican. And a lot of younger women will too.
Health Care is a top issue with women, they are the caregivers who take the children to the pediatrician. Unlike men, women are more likely to go to the doctor when something hurts. Men are more apt to just tough it out, not wanting to loose pay or appear soft. So healthcare counts, big time with women. Obamacare is disliked by the majority of voters. But the Republicans have not offered an Obamacare replacement, probably because they cannot agree on what it ought to be. And Republican leadership has failed to get the party together on a plan, probably fearing that whatever they propose the media will savage them on it.
We ought to propose freedom for insurance companies. Any insurance company licensed to do business by any state in the union, is free to sell insurance in all fifty states. Right now, to sell insurance you have to get a license from the state you are selling in. To jump thru fifty sets of paperwork hoops to get licensed in fifty different states is beyond any company. So a lot of states, like New Hampshire, only have ONE insurance company doing business in the state. And, monopoly leads to price gouging. Voters would love the idea. Insurance companies hate it. Insurance companies don't vote.
We ought to propose freedom to import drugs. Any drug approved by the health authorities of decent first world countries (Canada, England, France, Germany, and some others) may be imported duty free and sold by drug stores. This would drop the price of prescription drugs a lot. Voters would love the idea. Drug companies hate the idea. Drug companies don't vote.
We need to clamp down on malpractice suits. Right now every doctor has to pay $100,000 a year for malpractice insurance, unless he wants to be sued into poverty. This is largely a matter of state law. Up here in New Hampshire we did something about malpractice which cut the rate in half. Other states could do likewise. Voters are OK with this idea. Lawyers hate it. Although lawyers can vote, there aren't all that many of them.
We need to scrap the regulations that force gold plating of medical facilities. For instance at Dartmouth Hitchkok the main building is topped by a gigantic row of air conditioners. Turns out, regulations require the hospital to hold temperature to 72 degrees plus or minus ONE degree. which is ridiculous, in addition to ridiculously expensive.
Let's talk about women voters first. The Republicans need to get off the pro-life thing. For every pro-life voter we gain, we lose a young woman who fears getting pregnant and not being able to stop it. The party needs to stop backing all those little laws that chip away at abortion. The party doesn't need to switch over to a pro-choice stance, it just needs to stop talking about it. The ardent pro-life people will whine and cry, but in the end they will vote Republican. And a lot of younger women will too.
Health Care is a top issue with women, they are the caregivers who take the children to the pediatrician. Unlike men, women are more likely to go to the doctor when something hurts. Men are more apt to just tough it out, not wanting to loose pay or appear soft. So healthcare counts, big time with women. Obamacare is disliked by the majority of voters. But the Republicans have not offered an Obamacare replacement, probably because they cannot agree on what it ought to be. And Republican leadership has failed to get the party together on a plan, probably fearing that whatever they propose the media will savage them on it.
We ought to propose freedom for insurance companies. Any insurance company licensed to do business by any state in the union, is free to sell insurance in all fifty states. Right now, to sell insurance you have to get a license from the state you are selling in. To jump thru fifty sets of paperwork hoops to get licensed in fifty different states is beyond any company. So a lot of states, like New Hampshire, only have ONE insurance company doing business in the state. And, monopoly leads to price gouging. Voters would love the idea. Insurance companies hate it. Insurance companies don't vote.
We ought to propose freedom to import drugs. Any drug approved by the health authorities of decent first world countries (Canada, England, France, Germany, and some others) may be imported duty free and sold by drug stores. This would drop the price of prescription drugs a lot. Voters would love the idea. Drug companies hate the idea. Drug companies don't vote.
We need to clamp down on malpractice suits. Right now every doctor has to pay $100,000 a year for malpractice insurance, unless he wants to be sued into poverty. This is largely a matter of state law. Up here in New Hampshire we did something about malpractice which cut the rate in half. Other states could do likewise. Voters are OK with this idea. Lawyers hate it. Although lawyers can vote, there aren't all that many of them.
We need to scrap the regulations that force gold plating of medical facilities. For instance at Dartmouth Hitchkok the main building is topped by a gigantic row of air conditioners. Turns out, regulations require the hospital to hold temperature to 72 degrees plus or minus ONE degree. which is ridiculous, in addition to ridiculously expensive.
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